Pacific Gate Achieves 40% Faster Onboarding with Digital Workflow

Pacific Gate Achieves 40% Faster Onboarding with Digital Workflow

Executive Summary

Pacific Gate Capital, a growing wealth management firm, struggled with a cumbersome, paper-based client onboarding process that delayed investment timelines and frustrated new clients. By implementing a digital onboarding platform with automated document collection, e-signatures, and CRM integration, Pacific Gate streamlined the process and achieved a 40% reduction in onboarding time. This efficiency gain translated into a 15% increase in annual revenue due to faster deployment of investment strategies.

The Challenge

Pacific Gate Capital, managing over $350 million in assets for high-net-worth individuals and families, faced significant challenges with its traditional, manual client onboarding process. The firm’s growth was being hampered by inefficiencies inherent in paper-based workflows, leading to delayed investment deployment and client dissatisfaction.

The previous process involved multiple rounds of paperwork mailed to clients, often resulting in incomplete or incorrect information. Advisors then spent countless hours manually reviewing these documents, correcting errors, and chasing down missing signatures. This process typically took an average of 10 business days per client, from initial contact to the establishment of funded investment accounts.

Specifically, the challenge manifested in several critical areas:

• High Error Rate: With handwritten forms, errors were rampant. Roughly 20% of initial onboarding packets required corrections, adding an average of 2 days to the onboarding timeline per affected client. These errors ranged from simple misspellings of account beneficiaries to more significant issues like incorrect Social Security numbers, jeopardizing KYC/AML compliance.

• Delayed Investment Deployment: The extended onboarding timeline directly impacted the time it took to deploy client assets into investment strategies. For a client investing $1 million, even a 10-day delay could result in a missed opportunity cost of approximately $822 based on an assumed annualized market return of 20% (Calculated using a daily return rate compounded over the 10-day delay). This opportunity cost was particularly frustrating for clients eager to see their investments begin generating returns.

• Advisory Time Drain: Advisors were spending upwards of 30% of their time on administrative onboarding tasks, diverting their focus from client relationship management and portfolio strategy. This inefficiency limited the number of new clients an advisor could effectively onboard per month, capping potential firm growth. Benjamin Chow, a Senior Advisor at Pacific Gate, estimated he could only effectively onboard 3 new clients per month given the demands of the manual process.

• Compliance Risks: Maintaining physical records created compliance challenges. Locating specific client documents for audits was time-consuming and prone to errors. Furthermore, ensuring the secure storage and disposal of sensitive client information under regulatory requirements like GDPR and SEC guidelines posed a constant concern.

• Client Frustration: The cumbersome onboarding process led to client frustration and negatively impacted their initial experience with Pacific Gate. This frustration threatened client retention and hindered referrals. Clients voiced complaints about the repetitive requests for information, the complexity of the forms, and the lack of transparency in the onboarding process.

These inefficiencies were costing Pacific Gate significant time and money, limiting their growth potential, and negatively impacting client satisfaction. The need for a more efficient and streamlined onboarding process was undeniable.

The Approach

To address these challenges, Benjamin Chow championed the implementation of a digital onboarding platform designed to automate and streamline the entire process. The strategic approach focused on three key pillars: digitization, automation, and integration.

1. Digitization: The first step was to convert all paper-based onboarding forms into digital equivalents. Pacific Gate partnered with a document creation service to develop interactive, online forms that clients could easily complete and submit electronically. These forms were designed with built-in validation checks to minimize errors and ensure all required information was captured.

2. Automation: The core of the solution involved automating key steps in the onboarding workflow. This included:

• Automated Document Collection: The digital onboarding platform automatically generated personalized onboarding packets for each new client based on their specific needs and investment objectives. This eliminated the need for advisors to manually assemble and mail paper-based packets.

• E-Signatures: DocuSign was integrated to enable clients to electronically sign all required documents, eliminating the need for printing, signing, and mailing physical forms. This significantly accelerated the signature process and reduced the risk of lost or misplaced documents.

• Data Validation and Verification: The platform incorporated automated data validation checks to identify potential errors in client-provided information, such as incorrect Social Security numbers or missing addresses. In addition, it integrated with third-party data verification services to confirm client identities and comply with KYC/AML regulations.

• Automated Task Assignment: The platform automatically assigned tasks to the appropriate team members based on the stage of the onboarding process. For example, once a client submitted their completed documents, the system automatically notified the compliance team to review them for completeness and accuracy.

3. Integration: To further streamline the workflow, the digital onboarding platform was integrated with Pacific Gate's existing technology infrastructure, including:

• Salesforce CRM Integration: Zapier was used to connect the onboarding platform with Salesforce, Pacific Gate's CRM system. This integration automatically created new client records in Salesforce when a new onboarding process was initiated. It also updated client records as the onboarding process progressed, providing advisors with a real-time view of the status of each client's onboarding.

• Secure Document Storage: Box was implemented for secure storage and retrieval of all client documents. This ensured that sensitive client information was protected and easily accessible to authorized personnel. Box's robust security features also helped Pacific Gate comply with regulatory requirements for data privacy and security.

This holistic approach aimed to minimize manual intervention, reduce errors, accelerate onboarding timelines, and enhance the overall client experience. The implementation was rolled out in phases, starting with a pilot program involving a small group of advisors and clients to identify and address any unforeseen issues.

Technical Implementation

The digital onboarding platform was built using a combination of best-in-class software and strategic integrations:

• Core Platform: A cloud-based SaaS onboarding platform was selected for its user-friendly interface, robust security features, and integration capabilities. The platform provided the foundation for managing the entire onboarding workflow, from document collection to task assignment.

• E-Signatures (DocuSign): DocuSign was chosen for its industry-leading e-signature capabilities, security compliance, and seamless integration with the onboarding platform. The DocuSign API was used to embed e-signature functionality directly into the onboarding workflow, allowing clients to sign documents electronically with ease.

• Secure Document Storage (Box): Box was selected for its secure, compliant, and scalable document storage solution. The Box API was integrated with the onboarding platform to automatically store all client documents in secure, encrypted folders. Role-based access controls were implemented to ensure that only authorized personnel could access sensitive client information.

• CRM Integration (Salesforce & Zapier): Zapier, an integration platform-as-a-service (iPaaS), was used to connect the onboarding platform with Salesforce CRM. Zapier's pre-built connectors made it easy to automate data transfer between the two systems. Specific workflows were configured in Zapier to:

  • Create new client records in Salesforce when a new onboarding process was initiated in the onboarding platform. The following data points were passed from onboarding platform to Salesforce: first name, last name, contact email, contact phone, expected investment amount (in USD), date onboarding process began.

  • Update client records in Salesforce as the onboarding process progressed, including the stage of onboarding (e.g., "Documents Requested," "Documents Received," "Compliance Review," "Account Setup").

  • Trigger notifications in Salesforce to alert advisors when specific events occurred, such as when a client submitted their completed documents or when the compliance team completed their review.

• Data Validation & Verification: A third-party API was integrated to provide automated data validation and verification services. This API performed real-time checks on client-provided information, such as Social Security numbers, addresses, and phone numbers, to identify potential errors and prevent fraud. The API also performed KYC/AML screening to ensure compliance with regulatory requirements.

Formula for Onboarding Time Reduction:

Onboarding Time Reduction Percentage = ((Original Onboarding Time - New Onboarding Time) / Original Onboarding Time) * 100

Formula for Revenue Increase:

Revenue Increase = (New Revenue – Old Revenue) / Old Revenue

Results & ROI

The implementation of the digital onboarding platform yielded significant improvements in efficiency, client satisfaction, and revenue:

• 40% Reduction in Onboarding Time: The average onboarding time was reduced from 10 business days to 6 business days. This represents a 40% improvement in efficiency, allowing advisors to bring new clients into investment strategies much faster.

  • Specifically, document processing time was reduced from an average of 3 days to under 1 day. Signature turnaround time went from 4 days (including mail time) to under 1 day. Error correction time was reduced by 75%, from 2 days to half a day, due to built-in validation.

• 15% Increase in Annual Revenue: By reducing onboarding time and freeing up advisor time, Pacific Gate was able to onboard more clients per month. This translated into a 15% increase in annual revenue. Previously, Pacific Gate averaged $1.2 Million of revenue per advisor. With the new system, that jumped to $1.38 Million per advisor.

• Improved Client Satisfaction: Client satisfaction scores increased by 25% after the implementation of the digital onboarding platform. Clients praised the ease of use, the speed of the process, and the transparency provided by the real-time updates.

• Increased Advisor Efficiency: Advisors reported spending significantly less time on administrative onboarding tasks, freeing them up to focus on client relationship management and portfolio strategy. Advisor time spent on onboarding decreased from 30% to 10%, allowing them to focus on higher-value activities.

• Reduced Compliance Risks: The digital onboarding platform's secure document storage and automated data validation features helped Pacific Gate reduce compliance risks and ensure compliance with regulatory requirements.

• Cost Savings: Although there were upfront costs associated with implementing the digital onboarding platform, Pacific Gate realized significant cost savings in the long run. These savings were attributed to reduced paper costs, decreased mailing expenses, and lower labor costs associated with manual onboarding tasks. Conservatively, Pacific Gate saved $10,000 annually in paper, postage, and storage costs.

Calculation of ROI:

The Return on Investment (ROI) was calculated as follows:

((Revenue Increase - Implementation Costs) / Implementation Costs) * 100

Where:

• Revenue Increase = 15% of annual revenue
• Implementation Costs = Total cost of implementing the platform, including software licenses, integration costs, and training.

Key Takeaways

• Digitization is essential for modern wealth management: In today's digital age, clients expect a seamless and efficient onboarding experience. Digitizing the onboarding process is no longer a luxury but a necessity for staying competitive.
• Automation is key to scalability: Automating key steps in the onboarding workflow can significantly reduce manual effort, improve efficiency, and free up advisors to focus on higher-value activities.
• Integration is critical for a seamless workflow: Integrating the onboarding platform with existing technology infrastructure, such as CRM and document storage systems, can streamline the workflow and improve data accuracy.
• Focus on client experience: A positive onboarding experience can set the stage for a long and successful client relationship. Invest in solutions that make the onboarding process easy, transparent, and enjoyable for clients.
• Measure and track results: Continuously monitor the performance of the digital onboarding platform and track key metrics such as onboarding time, client satisfaction, and revenue. Use this data to identify areas for improvement and optimize the platform for maximum impact.

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